Please refer to important disclosures at the end of this report
1
As a part of the Tata group, Trent operates Westside, one of India’s largest and
fastest growing retail chains; Star Bazaar, a hypermarket chain and Landmark a
family entertainment format store. Trent, a leading retailer with a presence
across various consumer categories, is gearing up for rapid growth driven b
y
aggressive store addition. Accelerated store addition in the Westside format,
reduction of losses in Landmark would lead to improved margins in the
standalone business. Restructuring Star Bazaar store formats to smaller sizes
coupled with consistent growth in Zara are further expected to accelerate Trent’s
consolidated financial performance. Expansion of high RoCE Westside stores,
closure of loss making Landmark stores and rightsizing of Star would significantl
y
improve the financial performance of Trent. The Indian retail industry continues
to remain predominantly unorganised. Post demonetization and GST, the shift in
consumption pattern would largely favour organised brick-and-mortar retailers
like Trent. High quality franchisee and strong control over product, price and
point of sale comfort. The company has been maintaining a healthy dividend
payout of 37.22%. The company has a healthy profit growth of 15% CAGR fo
r
the last 3 years. Hence Buy.
BUY
CMP `240
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 32.6
MF / Banks / Indian Fls 12.2
FII / NRIs / OCBs 29.8
Indian Public / Others 25.5
Abs. (%) 3m 1yr 3yr
Sensex 8.2 17.6 32.0
Trent 17.9 65.4 135.9
52 Week High / Low 270/140
Avg. Daily Volume 25,449
Retail
Market Cap (
`
cr) 7,967
1
BSE Sensex 28,946
Nifty 8,935
Face Value (
`
)
Reuters Code TREN.BO
0.7
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Trent
Others | Retail
March 14, 2017
Trent | Retail
March 14, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Trent
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
Sell
(
< -15
)